Hong Kong Stocks Pare Weekly Gain as Utilities, Casinos SlideKana Nishizawa
Hong Kong stocks fell, with the benchmark index paring this week’s gain as utilities extended yesterday’s losses and gaming companies slid.
Hong Kong & China Gas Co. dropped 1.3 percent, leading its peers lower. Casino operator Galaxy Entertainment Group Ltd. declined 1.4 percent. China Hongqiao Group Ltd. tumbled 6.6 percent after the aluminum-products maker said it plans to sell new shares to its controlling stockholder. Hang Lung Properties Ltd. fell 2.3 percent, the biggest drop on the Hang Seng Index.
The benchmark Hang Seng Index slid 0.2 percent to 25,240.15 at the close in Hong Kong, paring its weekly gain to 2 percent. The Hang Seng China Enterprises Index of mainland shares retreated 0.2 percent to 11,368.34, while China’s Shanghai Composite Index rose 0.9 percent. Monthly U.S. jobs data are scheduled to be released today.
“Investors are cautious and they are not willing to increase their net exposure,” said Alex Wong, asset-management director at Ample Capital Ltd. “We will probably consolidate ahead of jobs data from the U.S. People will probably look at that as clue for U.S. direction.”
The Hang Seng China Enterprises Index, or the so-called H-share gauge, advanced 10 percent since June 30 as investors weighed whether mainland policy makers will add stimulus amid signs of economic weakness. The index traded at 7.9 times estimated earnings today, compared with multiples of 11.6 for the Hang Seng Index and 16.7 for the Standard & Poor’s 500 Index yesterday.
Futures on the S&P 500 dropped 0.2 percent today after the equity benchmark slipped 0.2 percent yesterday. Today’s monthly Labor Department jobs report will show U.S. companies in August boosted payrolls by more than 200,000 for the seventh straight month, according to a Bloomberg survey.
Hong Kong & China Gas dropped 1.3 percent to HK$17.98, while CLP Holdings Ltd. slid 0.6 percent to HK$66.40.
CSR Corp. fell 0.6 percent to HK$7.10 after surging as much as 7.1 percent while China CNR Corp. advanced 0.9 percent to HK$6.87, paring earlier advance of 5.7 percent. China’s two biggest makers of locomotives said they’ve submitted no plans to merge, after a report yesterday the government wants to combine them to support exports of high-speed rail technologies.
China Hongqiao tumbled 6.6 percent to HK$6.36. The company said it plans to raise net HK$1.69 billion ($218.1 million) by issuing as many as 275.9 million new shares at HK$6.19 each to controlling stockholder Hongqiao Holdings Ltd.
Casino companies declined. Galaxy Entertainment slid 1.4 percent to HK$56.65, while Sands China Ltd., a unit of Las Vegas Sands Corp., dropped 1 percent to HK$48.20.